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The role of micro and small enterprises (MSA) in local economic development (LED), with a focus on the wood-work MSE value chain

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dc.contributor.advisor Tegegne Gebre-Egziabher Elias Berhanu Debela 2014-11-06T12:11:38Z 2014-11-06T12:11:38Z 2014-08
dc.identifier.citation Debela, Elias Berhanu (2014) The role of micro and small enterprises (MSA) in local economic development (LED), with a focus on the wood-work MSE value chain, University of South Africa, Pretoria, <> en
dc.description.abstract This research had an objective of exploring the role of MSEs in LED through analysis of wood-work MSE value chain. The basic research questions underscore what the domestic wood-work value chain looks like; what major weaknesses and challenges confront the operation of MSEs; what major areas of upgrading and inter-firm relations are evident in the sector; and what MSE value chains contribute to LED. The research exercise was based on review of related literature and a field survey, involving MSE operators drawn from the study area (Addis Ababa). Mixed method of analysis (quantitative and qualitative) was employed to deal with the data collected through questionnaires and interviews. Porter’s model of VC (1985) and UNIDO’s description of wood-work VC (2005) were used to provide conceptual framework. The wood-work sub-sector in Ethiopia has a domestic value chain since main inputs are from local sources, designs are by local producers, and products are for domestic markets. Domestic actors govern the allocation of resources and the distribution of benefits. Public enterprises control plantations hence primary inputs. Wholesalers in turn control inputs, which finally reach MSEs through retailers. Design, production and marketing decisions are made by MSE operators. Middlemen are minor as most of the products reach consumers directly. The value-chain’s downstream is thus described by a short distribution-channel. Horizontal, non-market, linkages characterize inter-firm relations; whereas, arm’s length market linkages dominate the supplier-MSE-buyer relations. In the absence of “lead firms”, wood-work MSE value chains fail to qualify for the mainstream “buyer-driven” model. Without buyer-dominated quasi-hierarchical relationship, MSEs exercise “incremental upgrading” through learning-by-doing. Measures taken to upgrade the production process are considerably inclined to the physical (hardware) aspects of the firm. The MSE value-chain is restrained by internal and external problems. The current state of design marks underdeveloped links in the chain and delays entry into competitive markets. Despite the drawbacks, MSEs enable localities mobilize fragmented resources and create employment. MSEs contribute to LED through the value chain, right from input-sourcing to production and marketing. Inter-firm relations and upgrading efforts uphold the contributions. en
dc.format.extent 1 online resource (xiii, 288 leaves) : illustrations
dc.language.iso en en
dc.subject LED en
dc.subject MSE en
dc.subject Value-chain en
dc.subject Input-sourcing en
dc.subject Production en
dc.subject Marketing en
dc.subject Upgrading en
dc.subject Chain-governance en
dc.subject Inter-firm relations en
dc.subject.ddc 338.768408
dc.subject.lcsh Small business -- Economic aspects
dc.subject.lcsh Woodworking industries -- Economic aspects
dc.subject.lcsh Chain stores -- Economic aspects
dc.subject.lcsh Business enterprises -- Economic aspects
dc.title The role of micro and small enterprises (MSA) in local economic development (LED), with a focus on the wood-work MSE value chain en
dc.type Thesis en
dc.description.department Development Studies en Ph. D. (Development Studies)

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